In a bold move showing its unwavering faith in cryptocurrency, Strategy has snapped up an additional 6,556 Bitcoin (BTC) for $555.8 million.
Announced April 21, 2025, the purchase solidifies the company’s lead as the largest corporate holder of BTC, now boasting a staggering 538,200 coins. With Bitcoin hovering near $87,300, the Virginia-based firm shows no signs of slowing its crypto conquest.
Stock Sales Fuel Bitcoin Buys
Strategy funded its latest acquisition using cash from recent stock offerings. Between April 14 and 20, the company sold 1.76 million Class A shares and 91,000 preferred shares, netting $547.7 million and $7.8 million, respectively. This approach of raising capital through equity markets to buy Bitcoin has become a hallmark of its strategy.
“Our ATM programs provide flexible funding to execute our Bitcoin strategy,” the company noted in its SEC filing. By leveraging shareholder-backed capital, Strategy sidesteps traditional debt, maintaining agility in a volatile market.
A $36 Billion Bet: MicroStrategy’s Crypto Empire
To date, the firm has poured $36.47 billion into Bitcoin, acquiring its 538,200 coins at an average price of $67,766 each. The latest batch cost roughly $84,785 per BTC, reflecting higher market prices and fees. Despite recent fluctuations, Strategy’s holdings now represent nearly 2.5% of Bitcoin’s total supply.
CEO Michael Saylor, a vocal Bitcoin advocate, has repeatedly called it “digital gold.” His company’s relentless accumulation began in 2020, positioning it as a bellwether for institutional crypto adoption.
Stock Surge Mirrors Bitcoin’s Rally
News of the purchase sent Strategy’s shares (MSTR) up 2.77% in pre-market trading. Furthermore, Bitcoin climbed 3.1% to $87,300, supported by the announcement. The parallel rise highlights MSTR’s unique role as a Bitcoin proxy for traditional investors.
However, risks linger. The stock’s beta of 3.47 signals extreme volatility, and its current ratio of 0.71 raises liquidity concerns. Yet, supporters argue its Bitcoin-heavy portfolio offers long-term upside as crypto gains mainstream traction.
The “21/21 Plan”: A $42 Billion Blueprint
Strategy’s latest buy aligns with its ambitious “21/21 Plan,” unveiled in October 2024. The strategy aims to raise $42 billion by 2027, half from equity and half from debt, to expand its Bitcoin reserves. So far, $18.8 billion has come from stock sales, with $6.2 billion via convertible notes.
The firm also tracks “BTC Yield,” measuring Bitcoin growth against share dilution. With a 74.3% yield in 2024, it aims for 6-10% annually through 2027. “This metric ensures we’re rewarding shareholders while scaling our BTC position,” Saylor explained earlier this year.
Market Impact: Wins, Losses, and Tax Breaks
While Strategy’s Bitcoin bet has paid off overall, new accounting rules forced it to report a $5.91 billion unrealised loss in Q1 2025. Fortunately, a $1.69 billion tax cushion softened the blow.
Analysts remain divided. Critics warn of overexposure to crypto’s swings, while bulls praise its first-mover edge. “MicroStrategy’s strategy hinges on Bitcoin’s long-term appreciation,” said financial analyst Clara Wu. “If that stalls, the math collapses.”
What’s Next for MicroStrategy?
The company shows no signs of retreating. With Bitcoin’s halving event fuelling scarcity narratives and ETF approvals broadening access, Saylor’s team anticipates continued momentum. Upcoming stock offerings could funnel billions more into BTC.
Yet challenges persist. Regulatory scrutiny, market corrections, and interest rate shifts could pressure both Bitcoin and MSTR’s stock. For now, though, Strategy remains all-in on crypto, betting big that Bitcoin’s best days lie ahead.
As traditional finance and blockchain collide, one thing is clear: MicroStrategy’s audacious playbook is rewriting the rules of corporate investing.
